.jpeg)
CEA Nageswaran: Strong Domestic Demand, Reforms to Cushion Impact of US Tariffs on Indian Economy
US Tariff: India's Chief Economic Advisor V. Anant Nageshwaran said that many positive aspects are visible in the country's economy, which can limit the impact of US tariffs. He described GST reforms, tax cuts, employment incentive schemes, and domestic demand as factors of strength. Nageshwaran said that strong GDP growth, rural income, and an increase in digital payments will also support the economy.
India's Chief Economic Advisor V. Anant Nageshwaran has said that many positive signs are visible in the country's economy, which can balance the impact of US tariffs. He says that the steps taken by the government, such as a reduction in direct taxes, GST reforms, and employment-based incentive schemes, are supporting economic strength.
Nageshwaran said that the central government has emphasized structural reforms like ease of doing business and doing business honestly. This will reduce the uncertainty related to tariffs. He said that the figures for the month of August also point to the strong performance of the economy. He believes that even though the US tariffs will have some impact on external demand and domestic production, it will be temporary and limited.
The CEA said that India's real GDP grew by 7.8% in the April-June quarter (FY 2025-26), which is higher than 6.5% in the same quarter last year. At the same time, nominal GDP stood at 8.8%. Manufacturing and service sectors, as well as government consumption, have contributed significantly to this strong performance. He said that the economy can remain stable in the coming times with the help of domestic demand.
